Hillhouse backs $150m round in HK-listed MicroPort’s heart rhythm management unit

Photo by Robina Weermeijer on Unsplash

MicroPort Cardiac Rhythm Management Limited (MicroPort CRM), a subsidiary of Hong Kong-listed Chinese medical device developer MicroPort, has inked a deal to raise $150 million in a Series C round of financing from investors including Hillhouse Capital.

In a filing with the Hong Kong stock exchange on Monday, the parent firm said that the investment will value MicroPort CRM at $1.25 billion.

The capital increase and introduction of new investors will help MicroPort CRM further invest in the research and development of implantable pacemakers and defibrillator devices for managing cardiac rhythm disorders.

The proceeds will also fund the firm’s market development and help it enhance competitiveness, broaden market resources, as well as elevate the brand influence and market value, according to the filing.

Asia-focused private equity (PE) firm Hillhouse Capital and Country Garden Venture Capital (CGVC), the corporate VC arm of Chinese property developer Country Garden, agreed to each pump $20 million into the deal, MicroPort announced in a separate WeChat post on Tuesday. As the lead investor, the parent firm plans to inject $47 million into its subsidiary.

Five other new investors will invest the remaining $83 million in the round. These investors include Yong Rong (HK) Asset Management; affiliates of Chinese investment bank CICC; L Square Private Management; E Fund Management; and Worldstar Global Holdings Limited.

The transactions are expected to complete in early August 2021. MicroPort will remain a controlling shareholder of MicroPort CRM upon completion of the deal.

MicroPort CRM is principally engaged in the design, development, and global commercialisation of therapeutic solutions for the management of heart rhythm disorders as well as for the treatment of heart failure through cardiac resynchronization therapy (CRT).

The business was built on the cardiac rhythm management unit that MicroPort had acquired for $190 million from UK-based medical device maker LivaNova in April 2018.

Last year, the firm raised $105 million in a Series B round led by Hillhouse’s VC arm, GL Ventures. In the previous deal, GL Ventures had invested $50 million, while Alibaba’s co-founder Jack Ma-backed Yunfeng Capital invested $25 million. The parent firm also participated with an investment of $30 million.

MicroPort recorded annual revenue of $180.3 million for its cardiac rhythm management business in 2020. Its revenue in China reached $8.1 billion last year, with a year-on-year increase of 1.8% over 2019, according to its latest financial results.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.